If you’re looking to invest in commercial real estate, you want to make sure your chosen property has all or most of the attributes you’re looking for. You may walk into a commercial space and like what you see, but there are many behind-the-scenes factors that will come into play when determining if it’s the right space for you. So what should you be on the lookout for?
Solid Sustained Demand
While the concept of demand is well-known, the idea of sustained demand is slightly different; it’s the idea that the demand for a given demographic will remain relevant for years to come. If you plan on targeting a specific demographic or need or business that’s in high demand, but you or the market anticipate that that location or type of property won’t fare well more into the future, it might not be the best option for success. The space must be able to handle a growing business in the future as well as the present.
Accommodating Exit Strategy
While the investment you make ideally brings you success, sometimes deals go bad and you need a way out. With flexible exit strategies, you should have a long guaranteed income period and guaranteed buy-backs. Make sure there is a clear and fair exit strategy in place to prevent you from being stuck in a bad situation.
Do the Math
Commercial real estate is very different from residential real estate for many reasons, but the main reason it’s because it’s a business decision. It’s mainly about the numbers, the success, and the profits. You shouldn’t make a decision about a property until you do a thorough analysis of all the numeric, qualitative, and quantitative factors involved. Make sure there is plenty of room for profit in your analysis and stress-test your numbers for situations such as increased taxes or extra vacancy.
Work With a Trusted team for Commercial Real Estate Sales in Chicago
Buying commercial real estate can be a stressful venture, but the process is much easier when you work with the right people. At Frontline Real Estate Partners, we have a whole team of property managers, brokers, and sale, leasing, and acquisition representatives waiting to assist you. If you’re ready to buy commercial property, check out our current listings and contact us to get started.